The longest-running measure of consumer confidence fell sharply in September, raising concerns about whether government rhetoric about Budget "pain" has spooked people. GfK's Consumer Confidence Index had been recovering after years of rolling crises, higher interest rates and inflation gradually creeping up.

Starmer insists he is setting out reality of ‘badly damaged economy’ as GfK survey shows sharp fall in household morale

A long-running measure of consumer confidence has shown a significant drop in September, after warnings by the new government about the state of the public finances and a “painful” Autumn Budget to come.

The last time the index declined so steeply was in April 2022, in the wake of Russia's invasion of Ukraine which sent energy costs soaring.

Rachel Reeves will raise taxes by up to £16 billion in the autumn Budget to avoid inflicting austerity cuts on Britain’s public services, economists are predicting. They believe the Chancellor may hike inheritance tax,